What Might Happen To Markets If Donald Trump Wins

What Might Happen To Markets If Donald Trump Wins

over 3 years ago2 mins

The 59th US election takes place on Tuesday, so we’ve taken a look at how investors might cash in if the current president is right on the money 💵

What does this mean?

If the current president wins again, the most likely situation is a Congress – the law-making arm of government – split between two parties, with the Democratic Party holding onto its House of Representatives majority and the Republican Party keeping control of the Senate.

If that’s the case, investors can probably expect more of the last four years: a renewed trade war with China, as well as rising trade tensions with Europe 🇪🇺 Coronavirus will be on everyone’s minds too: the warring parties haven’t had much luck reaching an agreement on government support so far, and investors will be keen to know what – if anything – is next.

Why should I care?

A Republican presidential victory is likely to eliminate the chances of a low-cost public healthcare option, which some analysts reckon will boost the shares of US healthcare companies which would have had to compete on price 💊 Energy companies might get a lift too, seeing as Republicans are generally at odds with Democrats’ greener views. On the other hand, China’s stocks might come under pressure if the trade war picks back up – even though they’re a favorite among investors who expect the country’s economy to be the only major one to grow this year.

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Analysts largely agree that most investors – especially those focused on the long term – shouldn’t alter what they do with their money based on a single (if pretty monumental) election 📆 The US stock market has, after all, risen by 6-7% annually since 1993, no matter who was running the show. For all the volatility and uncertainty to come, you’re probably better off sitting back, relaxing, and letting your investments do their thing.

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Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

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